Systems, methods and devices for conducting transactions with portable electronic devices using virtual points

ABSTRACT

Systems, methods, devices and computer program products are disclosed for conducting transactions using a portable electronic device. A method of executing a software application on a portable electronic device includes: determining, via the portable electronic device, a location of the device; displaying, via the portable electronic device&#39;s display, a plurality of merchants within a predetermined proximity of the device&#39;s location; receiving, via a user input device, a selection corresponding to at least one of the merchants; displaying, via the display device, a balance of virtual rewards points available for redemption by the user of the device; displaying, via the display device, an exchange value of the virtual rewards points for making a purchase associated with the selected merchant; and, responsive to a purchase request received via the user input device, authorizing deduction of the exchange value from the balance of the virtual rewards points and providing confirmation of the purchase.

TECHNICAL FIELD

The present disclosure relates generally to portable electronic devicesand, more particularly, to software applications for conductingcommercial transactions using mobile computing and cellular devices.

BACKGROUND

Various forms of electronic payment instruments, such as credit cards,debit cards, pre-paid value cards, cash cards, gift cards, giftcertificates, and the like, have been used to facilitate commercialtransactions, including web-based (e.g., “e-commerce”) transactions andbrick-and-mortar (e.g., “store front”) transactions. Conventionalpre-paid payment mechanisms are typically acquired by a purchaser forvalue from a seller. The seller can take on various known forms, such asbanks and other financial institutions, retailers, online institutions,and other types of entities. The purchaser typically provides value(e.g., currency) to the seller and, in exchange, is issued a pre-paidpayment instrument, e.g., by delivering or otherwise associating thevalue with a pre-paid payment instrument. Traditionally, once the sellercompletes the initial transaction of selling and providing the pre-paidpayment instrument to the purchaser, the seller tracks purchases againstcurrency value attributed to the pre-paid payment instrument.

In a conventional gift card scenario, the originating purchaser isrequired to travel in person to a brick-and-mortar store and purchase acard that is associated with a certain amount of stored value. Onceacquired, the originating purchaser must then mail or otherwise deliverthe gift card to the intended recipient, who typically redeems the valueof the gift card by traveling to the store, picking out an item forpurchase, and presenting the gift card at a point-of-sale terminal as aform of payment. Generally speaking, this scenario is inconvenient forboth the originating purchaser and the recipient because of theadditional personal time and money required to travel to the store forthe original purchase of the gift card as well as subsequent purchaseswith the gift card. Even for the merchant, this situation may beundesirable due to avoidable overhead costs and personnel timeassociated with stocking, displaying and selling gift cards. Moreover,gift card redemption is typically limited to a single retailer such thatthe gift card can be redeemed at that retailer's stores only.

With the advent of the internet and the World Wide Web, internet-based“online” systems enable shoppers to purchase items, such as gift cardsor prepaid cards, from home using personal credit cards and a personalcomputer. In a typical online gift card purchase, the purchaser isrequired to access a specific website for a desired online retailer,navigate the website to determine where gift cards are available forpurchase, choose a gift card and associated value, enter personalshipping and billing information, and, once the transaction is complete,then wait for the gift card to be delivered. The processes andinterfaces for purchasing gift cards from an online retailer canoftentimes be confusing and time consuming. Moreover, the originatingpurchaser or the intended recipient must wait until the gift card isshipped and received before they can redeem the value of the card. Inaddition, a purchaser is generally required to visit multiple websitesand systematically repeat all of the foregoing steps for each retailerfrom which they wish to purchase a gift card. And almost withoutexception, gift cards are only available for purchase with credit cardsor other forms electronically transferred currency.

In addition, some points providers offer a direct exchange of rewardpoints to prepaid instruments offered by the same points provider. Thepoints providers therefore control the conditions and restrictions underwhich the reward points or gift cards can be exchanged, and also requirea consumer to conduct the transaction on the point provider's website.What is needed is a way of converting reward points issued by a pointsprovider to a virtual gift card issued by a prepaid instrument providerthat is not affiliated with the points provider (e.g., the issuer ofrewards points is a different entity from the issuer of the virtual giftcard), and allowing a consumer to redeem the virtual gift card for agood or service offered by a merchant, all using a portable electronicdevice such as a smartphone. What is needed is a way of using rewardpoints issued by a points provider at a point-of-sale terminal of amerchant for a good or service, or of exchanging reward points directlyfor a good or service at a merchant or for a promotional item. What isneeded is a way of drawing customers to brick-and-mortar stores andincentivizing them to make purchases there by grabbing their attentionas they approach the vicinity of the store's location. These and otherneeds are fulfilled by aspects of the present disclosure.

SUMMARY

Aspects of the present disclosure are directed to a method of executinga software application on a portable electronic device with a displaydevice and a user input device. The method includes: determining, viathe portable electronic device, a location of the portable electronicdevice; displaying, via the portable electronic device's display device,a plurality of merchants within a predetermined proximity of thelocation of the portable electronic device; receiving, via the portableelectronic device's user input device, a selection corresponding to atleast one of the merchants; displaying, via the display device, abalance of virtual rewards points available for redemption by the userof the portable electronic device; displaying, via the display device,an exchange value of the virtual rewards points for making a purchaseassociated with the selected at least one merchant; and, in response toa purchase request received via the user input device, authorizingdeduction of the exchange value from the balance of the virtual rewardspoints and providing confirmation of the purchase associated with theselected at least one merchant.

Additional aspects of the present disclosure are directed to a computerprogram product for a portable electronic device. The computer programproduct includes one or more non-transient computer-readable mediaincluding instructions which, when executed by one or more processors,cause the one or more processors to operate with one or more inputdevices and one or more display devices to: display a plurality ofmerchants within a predetermined proximity of a predetermined locationof the portable electronic device; display a selection corresponding toat least one of the merchants; display a balance of virtual rewardspoints available for redemption by a user of the portable electronicdevice; display an exchange value of the virtual rewards points formaking a purchase associated with the selected at least one merchant;and, in response to receipt of an indication of a purchase request,authorize deduction of the exchange value from the balance of thevirtual rewards points and provide confirmation of the purchaseassociated with the selected at least one merchant.

According to other aspects of the present disclosure, a system ispresented for conducting a commercial transaction using a portableelectronic device with a display device and a user input device. Thesystem includes one or more processors communicatively coupled to theportable electronic device, and a dedicated software application on theportable electronic device. The dedicated software application isconfigured to: in cooperation with the display device, display aplurality of merchants within a predetermined proximity of apredetermined location of the portable electronic device; receive, fromthe user input device, an indication of a selection corresponding to atleast one of the merchants; receive, from the one or more processors,data indicative of a balance of virtual rewards points available forredemption by a user of the portable electronic device; in cooperationwith the display device, display the balance of virtual rewards points,one or more purchases which can be acquired with the balance of virtualrewards points, and, for each of the displayed one or more purchases, acorresponding exchange value of the virtual rewards points for makingthe purchase from the selected at least one merchant; receive, from theuser input device, an indication of a purchase request for at least oneof the one or more purchases; and, in response to the purchase request,send a signal to the one or more processors to deduct the exchange valuefrom the balance of the virtual rewards points and complete the purchasewith the selected at least one merchant.

Aspects of the present disclosure are also directed to a method ofautomatically converting rewards points to a virtual prepaid instrumentusing a portable electronic device having a display device and a userinput device. This method includes: receiving over a wireless network ata portable electronic device a balance of rewards points associated witha user account stored on a points provider server remote from theportable electronic device, the rewards points being non-currency andconvertible by a user of the user account to an amount of currencycommensurate with the balance of reward points; responsive to receivingthe balance of the reward points, receiving from the user input devicean indication of a desired amount of currency to exchange for acorresponding number of the rewards points; the portable electronicdevice communicating over the wireless network the desired amount ofcurrency and a merchant identification directly or through a host serverto a stored value prepaid instrument provider server, the merchantidentification being associated with a merchant at which a good or aservice at a point-of-sale terminal at a physical location of themerchant is offered for purchase or exchange, the prepaid instrumentprovider server (a) being remote from the points provider server suchthat an issuer of the rewards points is a distinct entity from an issuerof a virtual prepaid instrument, (b) generating a code associated withthe virtual prepaid instrument, and (c) associating with the code atleast the desired amount of currency as a stored value associated withthe virtual prepaid instrument; displaying on the display device arepresentation of the code and the stored value associated with thevirtual prepaid instrument; in response to the representation of thecode being presented at the point-of-sale terminal for purchasing thegood or the service for a purchase price, deducting the purchase pricefrom the stored value to produce a modified stored value and displayingthe modified stored value on the display device; and, the portableelectronic device communicating over the wireless network the purchaseprice or the modified stored value directly or through the host serverto the prepaid instrument provider server to cause the prepaidinstrument provider server to modify the stored value to the modifiedstored value.

Also disclosed herein is a method of automatically exchanging rewardspoints using a portable electronic device having a display device and auser input device. The method includes receiving over a wireless networkat a portable electronic device a balance of rewards points associatedwith a user account stored on a points provider server remote from theportable electronic device, the rewards points being non-currency andconvertible by a user of the user account to an amount of currencycommensurate with the balance of reward points; responsive to receivingthe balance of the reward points, receiving from the user input devicean indication of a desired amount of currency to exchange for acorresponding number of the rewards points; the portable electronicdevice communicating to a host server over the wireless network thedesired amount of currency and a merchant identification, the merchantidentification being associated with a merchant having a point-of-saleterminal at a physical location of the merchant, the host server beingremote from the points provider server and operated by an entitydifferent from an entity that operates the points provider server;storing on the host server the desired amount of currency as a storedvalue; displaying on the display device a representation of the code andthe stored value; in response to the representation of the code beingpresented at the point-of-sale terminal for an item of value, deductingthe value of the item from the stored value to produce a modified storedvalue and displaying the modified stored value on the display device;and, the portable electronic device communicating to the host serverover the wireless network the modified stored value to cause the hostserver to modify the stored value to the modified stored value.

The above summary is not intended to represent each embodiment or everyaspect of the present disclosure. Rather, the foregoing summary merelyprovides an exemplification of some of the novel aspects and featuresset forth herein. The above features and advantages, and other featuresand advantages of the present disclosure, will be readily apparent fromthe following detailed description of the exemplary embodiments andmodes for carrying out the present invention when taken in connectionwith the accompanying drawings and appended claims.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a diagrammatic illustration of a representative system forconducting a transaction using a portable electronic device inaccordance with aspects of the present disclosure.

FIG. 2 is a plan-view illustration of an exemplary portable electronicdevice with a software application in accordance with aspects of thepresent disclosure.

FIG. 3 is another plan-view illustration of the portable electronicdevice of FIG. 2 showing a screen shot of the software application whichis displaying a hierarchy of participating merchants automaticallyupdating in response to movement of the portable electronic device.

FIG. 4 is another plan-view illustration of the portable electronicdevice of FIG. 2 showing a screen shot of the software application whichis now displaying the hierarchy of participating merchants after beingautomatically updated.

FIG. 5 is another plan-view illustration of the portable electronicdevice of FIG. 2 showing a screen shot of the software application whichis now displaying a balance of available virtual rewards points andvarious purchases that can be acquired with the available balance ofvirtual rewards points.

FIG. 6 is another plan-view illustration of the portable electronicdevice of FIG. 2 showing a screen shot of the software application whichis now displaying a purchase request.

FIG. 7 is another plan-view illustration of the portable electronicdevice of FIG. 2 showing a screen shot of the software application whichis now displaying the remaining balance of virtual rewards points afterpurchase of a representative virtual gift card.

FIG. 8 is a flow chart representing an exemplary algorithm or method forconducting a commercial transaction using a portable electronic devicein accordance with aspects of the present disclosure.

FIG. 9 is a diagrammatic illustration of a system for requesting andacquiring service provider validation and redemption of availablevirtual rewards points in accordance with aspects of the presentdisclosure.

FIG. 10 is a flow chart representing an exemplary system and method forrequesting and acquiring virtual gift card activation and delivery inaccordance with aspects of the present disclosure.

While the present disclosure is susceptible to various modifications andalternative forms, specific embodiments have been shown by way ofexample in the drawings and will be described in detail herein. Itshould be understood, however, that the disclosure is not intended to belimited to the particular forms disclosed. Rather, the disclosure is tocover all modifications, equivalents, and alternatives falling withinthe scope of the invention as defined by the appended claims.

DETAILED DESCRIPTION OF THE ILLUSTRATED EMBODIMENTS

While the present disclosure is susceptible of embodiment in manydifferent forms and aspects, there are shown in the drawings and willherein be described in detail aspects of the present disclosure with theunderstanding that it is to be considered as an exemplification of theprinciples of the invention or inventions disclosed herein and is notintended to limit the broad aspects illustrated. To that extent,elements and limitations that are disclosed, for example, in theAbstract, Summary, and Detailed Description sections, but not explicitlyset forth in the claims, should not be incorporated into the claims,singly or collectively, by implication, inference or otherwise. Forpurposes of the present detailed description, unless specificallydisclaimed, the singular includes the plural and vice versa; the words“and” and “or” shall be both conjunctive and disjunctive; the word “all”means “any and all”; the word “any” means “any and all”; and the word“including” means “including without limitation.” Moreover, words ofapproximation, such as “about,” “almost,” “substantially,”“approximately,” and the like, can be used herein in the sense of “at,near, or nearly at,” or “within 3-5% of,” or any logical combinationthereof, for example.

Referring now to the drawings, wherein like reference numerals refer tolike components throughout the several views, FIG. 1 illustrates anexemplary wireless communications system and network, designatedgenerally as 10, for conducting a commercial transaction using aportable electronic device 12 in accordance with aspects of the presentdisclosure. The system 10 includes, but is not limited to, the portableelectronic device 12, which is operated by a user or client 14, acommunications network 16, and one or more servers 18 and 20, and one ormore participating retailers or merchants 22 and 24. It should bereadily understood that the system 10 illustrated in FIG. 1 is merelyprovided as an exemplary application by which the various inventiveaspects and features of this disclosure can be applied. Moreover, onlyselected components of the system 10 have been shown and will bedescribed in additional detail hereinbelow. Nevertheless, the systemsand devices discussed herein can include numerous additional andalternative features, and other well-known peripheral components, forexample, for carrying out the various methods and functions disclosedherein. Those components which are not necessary for carrying out theaspects of the present disclosure will not be described in furtherdetail.

The communications network 16 can be a wired or a wireless network, or acombination of wired and wireless technology. In at least some aspects,most if not all of the transaction functions (e.g., purchasing)described herein by the portable electronic device 12 can be conductedover a wireless network, such as a WLAN or cellular data network, toensure freedom of movement of the user and device 12. In someimplementations, the system 10 can be a web-based system where users orclients 14 use internet-based websites and/or web-based applications toaccess the transaction features disclosed herein. In various aspects,the portable electronic device 12 includes a web browser or a dedicated,standalone application software, or a combination of both. A web browsertypically allows the user 14 to search for and/or request a web page(e.g., from the server 18) with a web page request. A web page, in anon-limiting example, is a data file that includes computer executableor interpretable data, graphics, text, video, and/or sound, that can beexecuted, displayed, played, processed, streamed, and/or stored, andthat can contain links to other web pages. In some embodiments, a usermanually requests a web page from the server 18. Alternatively, thededicated transaction software automatically makes requests with the webbrowser. Examples of commercially available web browser softwareinclude, but are certainly not limited to, FIREFOX, available from theMozilla Corp., of Mountain View, Calif., SAFARI available from Apple,Inc., and INTERNET EXPLORER, available from Microsoft Corp., of Redmond,Wash. In one implementation, the portable electronic device 12 canconnect to the network 16 over a cable, which can pertain to aperipheral bus such as a USB or Firewire® (IEEE-1394) connection.

The communications network 16 connects the user 14, through operation ofthe portable electronic device 12, with one or more servers 18 and 20.Communication can take place through any now-known or hereinafterdeveloped media, such as telephone lines (e.g., Dial-Up), local areanetwork (LAN) or wide area network (WAN) links (e.g., Ethernet, T(X)lines, X.25, etc.), broadband connections (e.g., Integrated Service DataNetwork (ISDN), Frame Relay, etc.), wireless links (e.g., infrared,Bluetooth®, WiFi or WLAN), cellular networks, and so on. The network 16,in at least some embodiments, can typically carry Transmission ControlProtocol/Internet Protocol (TCP/IP) protocol communications, andHTTP/HTTPS requests made by a web browser and associated responses andreplies, and the connection between client software and a server can becommunicated over such TCP/IP networks. Some non-limiting examples ofnetworks that can serve as the communications network 16 include awireless or wired Ethernet-based intranet, a local or wide-area network(LAN or WAN), and/or the global communications network known as theInternet, which can be configured to accommodate many differentcommunications media and protocols.

The dedicated transaction or application software can be implemented invarious forms. For instance, the dedicated transaction software orapplication software can be in the form of a web-based (e.g., Java)applet that is downloaded to the portable electronic device 12 and runsin conjunction with a web browser on the portable electronic device 12.Optionally, the dedicated transaction software can be in the form of astandalone software application, which can be implemented in amulti-platform language such as .Net or Java, or in native processorexecutable code. If executed on the portable electronic device 12, thededicated transaction software can be operable to open a networkconnection with the servers 18, 20 over the communications network 16and, thus, communicates via that connection with the server servers 18,20. In some embodiments, the dedicated transaction software of theportable electronic device 12 communicates with a single “host” or“client” server 18, which in turn conducts any necessary communicationswith one or more “third party” servers 20 to complete a particulartransaction. Optionally, the dedicated transaction software and webbrowser can be part of a single client-server interface, where thesoftware can be implemented as a “plug-in” to the web browser, forexample. Other optional variations and known alternatives are consideredto be within the scope and spirit of the present disclosure. The hostserver can include one or more servers, such as a host server and aprepaid instrument provider server, such as a server operated by FirstData Corporation's merchant processing service. In some implementations,the host server can carry out the functions of a prepaid instrumentprovider server, or the host server can interface with a remote prepaidinstrument provider server, which manages and stores gift cards andtheir associated account information including balances. An example of ahost server is a digital gifting platform operated by CashStar, Inc.,the assignee of the present disclosure. The third party servers 20 caninclude more than one third party server (e.g., a third party relativeto the prepaid instrument provider), such as a points provider server,which is not affiliated with the host/prepaid instrument provider server18. In other words, the issuer of reward points stored on the pointsprovider server 20 is not the same entity as the issuer of the prepaidinstruments stored on the prepaid instrument provider server 18. Thereference numbers 18 and 20 each generally designates one or moreservers.

In the illustrated system, the network 16 is used to securelycommunicatively couple the portable electronic device 12 to one or moreof the servers 18, 20. Each server 18, 20 can be implemented on one ormore server class computers, which can be subcomponents of a computerhardware server system, with sufficient memory, data storage, andprocessing power and, in some embodiments, the capabilities to run aserver class operating system (e.g., GNU/Linux, SUN Solaris, MicrosoftWindows OS, etc.). The servers 18, 20 can each be part of a logicalgroup of one or more servers, such as a server farm or server network.As is typical in large-scale systems, the application software can beimplemented in components, with different components running ondifferent server computers, on the same server, or any logicalcombination thereof. Although FIG. 1 illustrates a single portableelectronic device 12 communicating with a single host server 18 over asingle network 16 to execute a transaction with a single retailer 22, itshould be understood that the system 10 can support numerous portableelectronic devices 12 operating over one or more networks 16 to conducttransactions with an array of retailers 22 through a variety of hostservers 18 and third party servers 20.

The portable electronic device 12 comprises a housing or casing 26 andincludes one or more input devices 28, which can include various devicessuch as a keyboard, buttons on a button panel, a single- or multi-touchscreen, a track ball, a track pad, a microphone, or voice and/or gesturerecognition software and hardware. For output, the portable electronicdevice 12 can include, in a few examples, a display device 30, which caninclude a high-resolution liquid crystal display (LCD) panel, a plasmadisplay, or a light emitting diode (LED) or organic LED (OLED) display,one or more speakers, one or more user-accessible ports (e.g., an audiooutput jack for headphones, a video headset jack, etc.), and otherconventional I/O devices and ports. The primary display device 30 can beconfigured to display aspects of the dedicated transaction software,which can take on the form of a dedicated mobile software application(or “app”), as well as other tangential features, functions andinformation, such as text messaging, emails, alerts and announcements,personal information, advertisements, and the operating status of theportable electronic device 12. In some embodiments, the portableelectronic device 12 can also include a location tracking device 34,which can include a global positioning system (GPS) receiver. Examplesof some portable electronic devices include, but are not limited to,cellular phones and smartphones, laptop computers, tablet computers(e.g., the Samsung GALAXY TAB tablet device and the Apple IPAD tabletdevice), e-readers (e.g., the KINDLE electronic reader device), personaldigital assistants (PDA), etc. By portable, it is meant that the devicecan be comfortably held in the hand or hands of an adult human andweighs a couple to a few pounds.

In some embodiments, the user-input device(s) 28 accept(s) user input(s)and transforms the user input(s) to electronic data signals indicativeof input or inputs, which can correspond to an enabled feature for suchinput(s) at a time of activation. The input(s), once transformed intoelectronic data signals, can be outputted to a central processing unit(CPU) or controller 32 for processing. The electronic data signals cancorrespond to an electrical current, an electrical voltage, anelectrical charge, an optical signal, or a magnetic signal.

To enhance security, a transaction with the portable electronic device12 can be optionally enabled only by an authentication process in whicha primary or secondary source confirms the identity of the user 14. Uponentry of user identification information, for example, such as apassword, PIN number, credit card number, personal information,biometric input, predefined key sequences, etc., the user can bepermitted to access a user account. Thus, a transaction can be enabledby, for example, a combination of personal identification input (e.g.,mother's maiden name) with a secret PIN number, or a combination of apassword and a corresponding PIN number, or a combination of a creditcard input with secret PIN number. Other conventional security orauthentication features can be utilized to prevent unauthorized accessto a user's account, for example, to minimize an impact of anyunauthorized access to a user's account, or to prevent unauthorizedaccess to any personal information or funds accessible via a user'saccount.

The various components of the portable electronic device 12 arecontrolled by one or more processors (e.g., CPU, distributed processors,etc.) 32, also referred to herein generally as a controller (e.g.,microcontroller, microprocessor, etc.). The controller 32 can includeany suitable processor(s). By way of example, the controller 32 caninclude a plurality of microprocessors including a master processor, aslave processor, and a secondary or parallel processor. Controller 32,as used herein, can comprise any combination of hardware, software,and/or firmware disposed inside and/or outside of the housing 26 of thedevice 12 that is configured to communicate with and/or control thetransfer of data between the portable electronic device 12 and a bus,another computer, processor, or device and/or a service and/or anetwork. The controller 32 is generally operable to execute any or allof the various computer program products, software, applications,algorithms, methods and/or other processes disclosed herein. Thecontroller 32 can include a memory device or can be coupled to a memorydevice, which can comprise a volatile memory (e.g., a random-accessmemory (RAM) or multiple RAM) and a non-volatile memory (e.g., anEEPROM).

Location and movement of the portable electronic device 12 can betracked via a location tracking device 34, which can reside in theportable electronic device 12. As indicated above, the location can bedetermined through a satellite-based GPS navigation system. Even withouta GPS receiver, the portable electronic device 12 can provide locationand movement information through cooperation with a cellular systemthrough a process known as “trilateration.” A cellular system's towersand base stations communicate radio signals and are arranged into anetwork of cells. A cellular device, such as cellphones, smartphones andcellular-enabled tablet computers, have low-power transmitters forcommunicating with the nearest tower, base station, router, or accesspoint. As a user moves with the cellular device, e.g., from one cell toanother, the base stations monitor the strength of the transmitter'ssignal. When the cellular device moves toward the edge of one cell, thetransmitter signal strength diminishes for a current tower. At the sametime, the base station in the approaching cell detects a strengthincrease in the signal. As the user moves into a new cell, the towerstransfer the signal from one to the next. A computer can determine thelocation of the device based on measurements of the transmitter signal,such as the angle of approach to the cell tower(s), the time it takesthe signal to travel to multiple towers, and the strength of the signalwhen it reaches the towers. According to other aspects of at least someembodiments of the present concepts, a movement sensor can be providedcomprising one or more sensors configured to determine the movement(e.g., rotation, translation, etc.) of the portable electronic device 12with respect to an established datum or reference (e.g., position,spatial orientation, reaction, force, velocity, acceleration, electricalcontact, etc.) about or along one or more axes.

FIG. 2 provides a more specific example of a portable electronic device,which is illustrated as a WiFi-enabled and cellular-enabled tabletcomputer 112 with an LCD display panel 130 and one or more inputdevices, which in this example includes a touch screen (or“touchscreen”) 128A and a video camera 128B. The portable electronicdevice 112 of FIG. 2 can take on any of the various forms, optionalconfigurations, and functional alternatives described above with respectto the aspects exemplified in the portable electronic device 12 of FIG.1, and thus can include any of the corresponding options and features.For instance, the portable electronic device 112 can communicate withone or more servers (e.g., servers 18 and 20 of FIG. 1) via a wirelessnetwork (e.g., network 16 of FIG. 1) in any of the manners describedabove. Likewise, the software application 150 of FIG. 2 can take on anyof the various forms and optional alternatives described above.

Downloaded to or otherwise available on the portable electronic device112 is a software application for conducting commercial transactionsdisclosed herein, which is portrayed as a dedicated mobile softwareapplication 150 (more commonly known as a “mobile application” or just“app”). In the illustrated embodiment, the software application 150presents various types of information to the user, including the time,remaining battery power, and a map 152 with a symbol, avatar or icon 154representing the location and movement of the user and portableelectronic device 112. Also displayed is user information 156 (e.g., theuser's name) and a balance of virtual rewards points 158 available forredemption by the user of the portable electronic device 112. Someembodiments can allow the user to select from a variety of differentrewards points available for redemption (e.g., DELTA SKYMILES®, HOLIDAYINN® PRIORITY CLUB Reward Points, and VISA® Signature points). The userlinks one or more reward points account to the software application 150,which communicates with a points provider server, such as the sever 20,to authenticate the user's reward points account and return a balance ofreward points associated with the user's reward points account.

Rewards points (also called loyalty points) are typically issued by anentity as part of a customer loyalty program that is designed to rewardcustomers for making purchases from the same merchant or company or formaking purchases using the same media. Loyalty programs can be initiatedby businesses to actively cultivate loyalty amongst customers to ensurethey continue patronizing the business, as well as to acquireinformation relating to customer spending habits. Loyalty programs canbe structured marketing efforts that reward, and therefore encourage,continued and regular buying behavior with a particular business. Inaddition to reward points, loyalty programs can offer prizes, discounts,and other inducements designed to incentivize repeat business fromcustomers. Loyalty programs span through a broad spectrum of industries,including, in some non-limiting examples, frequent-flyer programs forairline customers, gas cards for gas station patrons, rewards cards thataccumulate reward points for repeated use of a credit or debit card,priority club programs for hotel reservations and automobile rentals,and customer loyalty programs for restaurants, hardware stores, grocerystores, electronic stores, department stores, etc., or for frequent useof a website or online service.

Also presented by the software application 150 of FIG. 2, throughcooperation with the display device 130, is a number of merchants 122A-G(e.g., retailers, wholesalers, dealers, consignors, vendors, brokers,etc.) that are available for participation in a Mobile Gift Rewardsprogram, which will be described in further detail below. Someembodiments also display the respective location of each merchant 122A-Gon the map 152 using a graphic (e.g., using a corresponding graphicalpin 162A-G for each merchant 122A-G, respectively), and the location ofthe portable electronic device 112 relative to the merchants 162A-G, forexample, by via placement and movement of the icon 154. In someembodiments, the displayed merchants 122A-G are those within apredetermined proximity (e.g., X number of feet, Y number of miles, Znumber of minutes drive, etc.), such as a radius, of the currentlocation of the portable electronic device 112. Optional arrangementscan limit the displayed merchants 122A-G to those that are within auser-selected proximity of the current location and/or within apredetermined proximity of a user-selected future location of theportable electronic device 112. Some embodiments can require theindividual merchants be registered and/or pay a fee to participate inthe Mobile Gift Rewards program and, thus, be displayed by the softwareapplication 150. As yet another option, an individual retailer can pay afee to ensure they are always shown, prioritized, or both, by thesoftware application 150.

The merchants 122A-G are shown arranged in a hierarchy or list 160 thatis based, at least in part, on a respective distance of each merchant122A-G from the location of the portable electronic device 112. Forexample, each merchant 122A-G is represented in FIG. 2 by a respectivemerchant tile, which includes merchant-specific information, such as themerchant's name, logo, location, and distance from the portableelectronic device, for example. The merchant tiles 122A-G are shownarranged in descending order on the display panel 130 from top-to-bottomin order of closest-to-furthest. The first merchant 122A—Books andMore—is located in the Warner Building and is the closest to thedetermined location of the portable electronic device 112 (e.g., thedistance D1 of the first merchant 122A is 38 feet away in FIG. 2), andis therefore shown at the top of the hierarchy 160. According to theillustrated example, the first merchant 122A is running a promotionalmarketing program offering a FREE GIFT TODAY, which is displayed on thefirst tile and highlighted by a promotional tag 136. The second merchant122B—Republic Clothing—is also located in the Warner Building, but is adistance D2 of 80 ft. away from the portable electronic device 112, andis therefore positioned as second from the top of the hierarchy 160 inFIG. 2. In accordance with this scheme, the third merchant 122C isfurther from the portable electronic device 112 than the first andsecond merchants 122A, 122B, but closer than the fourth, fifth, sixthand seventh merchants 122D, 122E, 122F, and 122G, respectively, and istherefore shown third from the top of the hierarchy 160. The remainingfour merchants 122D-G are also arranged in descending order fromtop-to-bottom in order of closest-to-furthest. The hierarchy 160 can bean ordered list of merchants, ranked by proximity to the location of theportable electronic device 112. Alternately, the hierarchy 160 can havea hierarchical layout having multiple levels in which multiple merchantscan be arranged on the same level. Merchants can be ranked according toa characteristic, such as proximity to the portable electronic device112 or type or category of good or service offered. For example, duringmealtimes, restaurant or food eateries can be organized at the top ofthe hierarchy 160 on the same level and displayed left to right inproximity to the portable electronic device 112. Clothing merchants canbe organized on a lower level of the hierarchy, but re-ranked to ahigher level outside of mealtimes. Within each level, merchants can beranked according to their proximity to the portable electronic device112. The arrangement of the merchants varies in real time as a functionof the time of day or the location of the portable electronic devicerelative to the merchants or both.

As described above during the description of the portable electronicdevice 12 of FIG. 1, the location and movement of the portableelectronic device 112 of FIGS. 2-7 can be tracked, monitored, orotherwise determined, for example, via GPS tracking, cellulartrilateration, movement sensors, or through any other suitable locationtracking system. In so doing, the displayed hierarchy 160 of merchants122A-G can be automatically updated in response to a determination thatthe portable electronic device 112 moved from a first “start” location(e.g., FIG. 2) to a second “new” location (e.g., FIG. 3) whereby thedistances between the merchants 122A-G and the device 112 change. By wayof non-limiting example, when it is determined that the portableelectronic device 112 moves from its initial location in FIG. 2, closestto the store or kiosk location of the book merchant Books and More 162A,to a new location in FIG. 3, closest to the store or kiosk location ofthe clothing merchant Republic Clothing 162B, the movement can be shownin real time by repositioned the icon 154 on the map 152 of the softwareapplication 150. Books and More 162A (the first merchant 122A) is now anew distance D1′ of 65 ft. away from the portable electronic device 112,while Republic Clothing 162B (the second merchant 122B) is now a newdistance D2′ of 60 ft. away from the portable electronic device 112. Toreflect this change in proximity, the second merchant 122B is displayedin real time via the software application 150 as being moved the top ofthe hierarchy 160 while the first merchant 122A is contemporaneouslymoved down one spot below the second merchant 122B on the hierarchy 160.At the same time, the distances of the other merchants 122C-G are alsoautomatically updated in real time to reflect the change in proximity tothe portable electronic device 112. FIG. 4 provides a screen shot of thesoftware application 150, which is now displaying the hierarchy 160 ofparticipating merchants 122A-G after being automatically updated in realtime to reflect the new closest merchant to the portable electronicdevice 112. As the user walks toward one of the merchants, anotification from a merchant can be pushed to the portable electronicdevice 112 and displayed on its display device 130, where thenotification informs the user of a deal or special offer or promotionavailable from the merchant or at the merchant's nearby store. Merchantscan pay to have these notifications pushed to nearby portable electronicdevices 112, which will cause the notifications to be displayed on thedisplay device 130, for example, in a pop-up window.

Turning to FIG. 6, the user decides he/she would like to make a purchasefrom the third merchant 122C—Star Coffee—which has a brick-and-mortarstore located in the Warner Building and displayed on the map 152 (seeFIG. 2). At present, Star Coffee 122C is 75 ft. away from the portableelectronic device 112, which is the third closest merchant to thelocation of the portable electronic device 112, and is thereforepositioned as third from the top of the hierarchy 160 in FIG. 5. Toinitiate a purchase, the user selects Star Coffee, for example, bytouching the corresponding third merchant tile 122C on the touch screen128A. This selection can be displayed by the software application 150,for example, by highlighting the third tile 122C and contemporaneouslydisplaying one or more available Star Coffee purchases on the displaydevice 130. Optionally or additionally, selection of a particularmerchant and/or concomitant display of various purchase options for thatmerchant 122A-G can be automatically initiated in real time by aproximity trigger—e.g., when it is determined that the portableelectronic device 112 and, thus, the user, are within a minimumthreshold distance or have entered the store or are standing at a kioskfor that merchant. In some embodiments, the software application 150 canbe operable to generate a push notification designed to notify the userof their proximity to a particular merchant and/or highlighting apromotional activity offered by the merchant and/or requesting selectionof said merchant. The store or kiosk of a merchant includes aconventional point-of-sale terminal for conducting purchase and saletransactions between the purchaser and the merchant for items for saleby the merchant at the store or kiosk. The point-of-sale terminal caninclude a barcode scanner for scanning a barcode or other code displayedon the display device 130 of the portable electronic device 112.

In the illustrated embodiment, the map 152 shown on the display device130 in FIGS. 2-4 is replaced by a design, advertisement or motif,designated generally in FIG. 6 at 138, which can be representative ofthe selected merchant (e.g., the trade dress of a typical Star Coffeestore or a photograph of the interior of the Star Coffee store or a menuof items available for purchase at the Star Coffee store). A popupwindow 164, which can be generated by the software application 150overlying a portion of the motif 138, presents the user with a number ofpurchase options 166 associated with the selected merchant. As usedherein, “a purchase” can be “one or more purchases” including, forexample, a purchase of a virtual gift card and a subsequent purchase ofan item or service at the merchant's store using the purchased virtualgift card. As shown, the purchase options 166 include a STAR CARD giftcard 168 associated with the selected Star Coffee merchant 122C. Thecard value of the gift card 168 can be fixed or can be chosen from oneor more predefined values or “Card Amount” 170 (e.g., $30 in FIG. 5), orcan be a user-defined value or “Other Amount” 172. Selection of the CardAmount 170 button of FIG. 5, e.g., via the display device 130 touchscreen 128A, can trigger a menu 178 which presents the user with avariety of predefined user-selectable values for the gift card 168. Theuser can choose from the menu 178 one of these user-selectable purchaseoptions. Additional user-selectable options can include adding the cardvalue to a preexisting gift card account associated with the user of theportable electronic device 112 (e.g., via selection of the “Send to myAccount” option 174), or delivering the gift card 168 to someone otherthan the user of the portable electronic device (e.g., via selection ofthe “Send to a Friend” option 176). The latter option can require theuser to enter the intended recipient's personal information and/or anemail address, a mailing address, or a preexisting account number forpurposes of delivery.

Alternately, as disclosed above, instead of converting the reward pointsto a virtual gift card, the reward points can be exchanged directly foran item at the merchant, such as a hat, or for a promotional item, suchas buy one get one free, or give one get one, at the merchant's store.The reward points can be used on the spot in the merchant's store usingthe software application 150, without requiring the user to log into anyother accounts or visit any external websites or to leave the store andreturn later. All of the aspects herein allow for instant gratificationby the consumer, providing the ability to exchange or convert rewardpoints for a virtual gift card, directly for a good or a service, or fora promotional item at a point-of-sale terminal in a merchant's store orat a merchant's kiosk, such as in a mall.

As another option, a virtual credit card (e.g., card type, card number,card expiration, card security code, card billing information, etc.) canbe stored via the software application. That way, the user could use thestored credit card to purchase a gift card or goods or services fromretailers that are within the proximity of the portable electronicdevice 112 directly from the device 112. In some embodiments, thisoption would only be available if the retailer is offering a promotionwhere it is more advantageous to buy with the stored credit card insteadof buying with cash or other payment.

Returning to the illustrated embodiment above in FIG. 6, prior to,contemporaneous with, or after the card value is set, the softwareapplication 150 presents the user with an exchange value 180 of thevirtual rewards points required to make the selected purchase associatedwith the merchant 122C. As seen in FIG. 6, for example, the user isrequired to convert or redeem 1,500 of 72,000 available VISA® RewardsPoints to purchase a $30 card value for a STAR CARD gift card 168.Optionally, the user can be provided with a correspondingvirtual-rewards-points exchange value for each of the availablepurchases from the selected merchant 122C (e.g., via the menu 178) suchthat the user can make an informed decision as to which option tochoose. Typically, but not necessarily, the exchange value for eachpurchase option can established by the business entity responsible forissuing the rewards points. By way of non-limiting examples, thebusiness entity can establish a universal exchange rate for theirrewards points (e.g., 50 points/dollar) or can establish a scale ofexchange values for their rewards points (e.g., 100 points/dollar forpurchases under $10, 75 points/dollar for purchases between $10 to $20,and 50 points/dollar for purchases over $20).

With continuing reference to FIG. 6, the user submits a final purchaserequest, for example, by pressing the “Confirm” button 182 on the touchscreen 128A of the portable electronic device 112. Alternatively, theuser can cancel their purchase, for example, by pressing the “Cancel”button 184, or can alter their purchase, for example, by pressing the“Modify” button 186. In the illustrated embodiment, the user has decidedto buy a new virtual gift card 168 with a card value of $30 (a virtualgift card can be generally referred to herein as a virtual prepaidinstrument, which exists in electronic form but can optionally beembodied on a physical medium, such as printed on paper or a plasticcard). This purchase can be reflected, in part, by the updated balanceof virtual rewards points 158 shown in FIG. 7, which reflects theredemption of 1,500 rewards points and a remaining updated balance 158of 70,500 rewards points. In response to the final purchase requestreceived via the user input device (e.g., display device 128A), thesoftware application 150 submits an authorization request, such as tothe points provider server 20, to deduct the exchange value from thebalance of the virtual rewards points. Upon receipt of suchconfirmation, the software application 150 requests the addition offunds—such as the card value if the card is a new card and not anexisting card—to the corresponding account. Once completed, the softwareapplication 150 provides confirmation of the purchase associated withthe selected merchant 122C. The confirmation of the purchase can includedisplaying a digital representation of the virtual gift card, aconfirmatory email, a push notification, a popup-window confirmation,etc., that the card value has been added to the account associated withthe gift card. Alternately, if the user is adding to an existing virtualgift card, the exchange value is added to whatever balance was presenton the existing virtual gift card. It should be noted that at thisstage, the points provider server 20 receives only an authorizationrequest, but does not actually deduct the reward points from the user'sreward points account. In some aspects, only after the virtual gift cardis authorized and released to the user does the points provider server20 deduct the reward points from the user's reward points account. Theupdated balance of reward points 158 as displayed in FIG. 7 does notnecessarily mean that the points provider server 20 has actuallydeducted those points, but rather indicates what the remaining balancewould be if the virtual gift card is approved and released by theprepaid instrument provider server 18.

For some preferred embodiments, the gift card 168 is a “virtual giftcard” (generally called a virtual prepaid instrument) where a physical(e.g., plastic or paper) gift card or gift voucher is not issued withthe purchase. The term “card” includes a voucher, ticket, coupon, andthe like, and is not limited to any particular tangible form such aspaper or plastic. “Virtual” as used herein means that the prepaidinstrument exists electronically, such as an electronically stored file,that is stored on a non-transitory computer-readable medium, such as amemory device. According to some implementations, a virtual gift cardaccount is created and a redemption code (e.g., a “Star Card Number” inFIG. 7) is assigned to that account, such as by the prepaid instrumentprovider server 18. Confirmation of the user's purchase of a virtualgift card can be limited to displaying, via the display device 130, adigital representation of the virtual gift card with the characterizingindicia of the gift card. As seen, for example, in FIG. 7, thecharacterizing indicia on the virtual gift card 168 can include a cardbalance 188, a barcode 190 that can be scanned by the merchant 122A at apoint-of-sale terminal, a logo 192 of the merchant 122A, a redemptioncode/card number 194, etc. Optionally, an email can be sent to the userand/or intended recipient, which includes the redemption code/cardnumber along with the other pertinent information.

Virtual gift cards offer many of the conveniences of a traditional giftcard, but are typically available within seconds or minutes without theextra time and cost associated with shipping a physical gift card, andare less susceptible to loss and theft. Gift recipients can receive anemail notification with a link to activate their virtual gift card. Inthe context of the present disclosure, virtual gift cards offer thebenefit of allowing the user to instantly redeem a virtual gift card,which was replenished or funded by reward points converted into acommensurate amount of currency, at a merchant's store or kiosk withouthaving to leave the store or kiosk and without having to visit anyfurther websites or log into additional accounts to authenticatemultiple transactions (such as converting the reward points to a virtualgift card). The software application 150 is configured to allow a user,within just a few clicks or touches within the software application 150only, to use reward points to buy an item at a merchant location withina few seconds or minutes at the most. The user is not required to visitany outside websites or enter any further authentication information,though in some implementations, these actions are contemplated in thisdisclosure. Authentication can be handled by the host server 18 when itis present as an interface between the points provider server 20 and theprepaid instrument provider server 18, or by the points provider server20 when it interfaces directly with the prepaid instrument providerserver 18.

Once the rewards points are redeemed or converted, the card value 170(e.g., $5) is added to the new or existing account associated with thegift card 168, and confirmation of the purchase is received by the user(all of which can occur substantially simultaneously in real time) onthe display device 130, the user can purchase goods or services, orboth, from the selected merchant 122C while present at the merchant'sbrick-and-mortar store or kiosk. By using a virtual gift card 168, asexemplified in the illustrated embodiment of FIG. 7, the purchase can becompleted, at least in part, via the software application 150 on theportable electronic device 112 with information transferred at aPoint-of-Sale (POS) terminal via the displayed virtual gift card 168. Asone option, the user can make a purchase directly from the portableelectronic device 112, for example, via selection of the a “MakePurchase” button. Pressing the Make Purchase button, e.g., using thetouch screen 128A, can bring up one or more items or menu(s) ofavailable purchases, from which the user can choose and purchasegoods/services through operation of the software application 150. Asanother option, near field communication (NFC) can be utilized as ameans for the portable electronic device 112 to communicate with a POSterminal.

Once the user completes the transaction, for example, via selection ofthe “Complete Transaction” button 198, the good(s) and/or service(s) canbe transferred at the POS terminal while the user is onsite at themerchant's store. As an optional alternative, the user can present thevirtual gift card 168 to a cashier or other employee at the POSterminal, who can confirm the remaining card balance 188, scan thebarcode 190, enter or otherwise record the redemption code/card number194, or any logical combination thereof, to complete the requestedpurchase. Once the purchase is complete, the card balance 188 is updatedin FIG. 7 from $30 to $27.50 to reflect the exchange of funds. Thesoftware application 150 can communicate the deduction of $2.50 from thevirtual gift card balance to the prepaid instrument provider server 18,which deducts the transaction amount of $2.50 from the balanceassociated with the virtual gift card stored on the prepaid instrumentprovider server 18. When the user is finished, the user may then pressthe “Close” button 196 to dismiss the popup window.

In the illustrated embodiment, the displayed merchants 122A-122G can bea subset of a larger group of participating merchants, where thosemerchants that are displayed are currently available for participationin the Mobile Gift Rewards program and are within a predeterminedproximity of the portable electronic device 112. The softwareapplication 150 can provide the user with a search function (e.g.,search box 161 in FIG. 5) with which the user can search for some or allof the participating merchants. When the user locates a desired merchanton the portable electronic device 112, the user can select, e.g., viathe user input device 128A, one of the participating merchants. Onceselected, the user can use the balance of virtual rewards points 158 toconvert a selected number of the rewards points into a gift card orother good or service associated with the selected participatingmerchant. When the user selects one of the participating merchants, apush notification can be sent from the host server 18 to the portableelectronic device 112 with a promotional item or a deal of the day toentice the user to visit the selected merchant.

With reference now to the flow chart of FIG. 8, an improved method forconducting a commercial transaction using a portable electronic device,such as those devices 12, 112, 122 shown in and described with referenceto FIGS. 1-7, for example, is generally described as an algorithm 200 inaccordance with aspects of the present disclosure. FIG. 8 can berepresentative of an algorithm 200 that corresponds to at least someinstructions that can be stored, for example, in a memory device, andexecuted, for example, by a CPU to perform any or all of the aboveand/or below described functions associated with the disclosed concepts.The method 200 will be described with reference to the various aspectsand features shown in FIGS. 1-7 and 9-11 of the drawings; such referenceis being provided purely by way of explanation and clarification.

The method 200 starts at block 201, where the user can be required todownload or otherwise access dedicated transaction software, which cantake the form of or be based on the dedicated mobile softwareapplication (or “app”) 150. For instance, a mobile device softwareapplication can be installed on the user's mobile phone/tablet 122,which facilitates the transfer of loyalty and/or other rewards points158 into (electronic or virtual) gift cards 168. Block 203 represents a“Manual Trigger,” where the user can manually open or otherwise accessthe mobile app 150 and choose to convert virtual rewards points 158 tomake a purchase from a desired merchant 122A-G. In at least someembodiments, opening a software application installed on a portableelectronic device automatically initiates the Manual Trigger 203. If themanual trigger 203 is initiated, the user can select a retailer, atblock 205, from a list of participating retailers, such as the hierarchy160 of FIGS. 2-7. This list or hierarchy 160 can be managed by the hostserver 18 or by the prepaid instrument provider 18, for example, and canbe limited, in some embodiments, by location parameters. If the userselects a particular merchant, such as the Star Coffee merchant 122Cdiscussed in the above examples (block 205=Yes), the method 200 proceedsto query 209. If no selection is made at query 205 (block 205=No), themethod 200 can terminate.

Block 207 represents a “Proximity Trigger,” where the portableelectronic device 112 supports background location tracking or fencing(e.g., GPS tracking, cellular trilateration, or any of the other optionsdiscussed hereinabove) such that proximity alerts (e.g., pushnotifications, emails, etc.) or the automatic opening of the app 150 canbe triggered when a user nears a participating retailer's physicallocation. According to some aspects of the disclosed concepts, the usercan have to change the device's settings and/or their app preferences toenable the Proximity Trigger feature 207. The radius or boundaries ofthe geo-fence, as well as other merchant-related settings, restrictions,and preferences, can be configured by the retailer or the user, or setas default parameters by the provider of the app 150, or any combinationthereof. In some instances, the user's preferences override theretailer's preferences and/or the default settings. When a proximityalert does occur, the retailer that triggered the proximity alert can behighlighted to the user and the user can be prompted, for example, atquery 209 to select the suggested retailer. Optionally, the user canselect any of the displayed merchants, as described above. While theuser can change to a different retailer, a primary use case can be toredeem virtual rewards points with one or more suggested or “preferred”retailers.

Once a retailer is chosen (e.g., at block 205) or suggested (e.g., atblock 209), the user selects a monetary instrument (or other good orservice) they wish to purchase at block 211. As mentioned above, theuser can convert reward points into currency maintained with a virtualgift card or directly for the purchase of an item at the merchant'splace of business. The user can configure a denomination, a recipient, adesign, and/or a type of the merchant's “closed-loop” virtual gift card.Once configured, the system determines, at step 213, if there aresufficient rewards points available to complete the requested purchase.By way of example, and not limitation, FIG. 9 is a diagrammaticillustration of a system 300, which can be an extension or part of thecommunications system and network 10 illustrated in FIG. 1, forrequesting and acquiring points provider validation and redemption ofavailable virtual rewards points. According to this example, a mobileapplication 350 on a portable electronic device 312 sends a verificationrequest via a communications network 316 to the Application ProgrammingInterface (API) 320 of the reward points provider server 20 to verifythe number of rewards points currently available for redemption by theuser. It can be desirable, in at least some embodiments, that thisrequest be routed through a host server (e.g., host server 18 of FIG. 1)of the app provider. When the request is received by the serviceprovider API 320, the user account 352 with the service or pointsprovider server 20 is queried and the available rewards points are madeknown to the user (e.g., displayed via the portable electronic device312). An exchange rate or an exchange value of the virtual rewardspoints to purchase the virtual gift card can also be made known to user.As indicated above, this rate can be configured by the points providerserver 20 (e.g., via a Points Provider API and Engine 318). In someembodiments, the user-selected denomination for the virtual gift cardmust falls within minimum and maximum denominations set by the retailerand, in some configurations, must be available through the gift cardservice provider 18 and fall under the maximum denomination availablefrom the available points conversion rate.

Once the desired virtual gift card and corresponding denomination hasbeen established, a final validation of the available virtual rewardspoints can be initiated within the reward points provider's 20proprietary system and accessed through the points provider's 20 API320. If there are sufficient rewards points available (query 213=Yes)the user's rewards points are separated and prepared for redemption.Accessed through the points provider's 20 API 350, this step authorizesthe deduction of points within the points provider's proprietary system.In at least some embodiments, as mentioned above, this step does notactually deduct the points, but rather simply authorizes the rewardspoints for deduction. Once the virtual gift card has been activated andreleased, the application 150, 350 sends a request to the pointsprovider server 20 a capture or a deduction of the previously authorizedreward points, and the points provider server 20 deducts the rewardpoints from the associated reward point account.

Upon successful authorization, the rewards points are redeemed at block215 and the stored value (gift) card is activated at block 217. FIG. 10illustrates a representative system and method for requesting andacquiring virtual gift card activation and delivery. The mobileapplication 350 issues a request from the portable electronic device312, through the network 316 and, in at least some embodiments, throughthe host server 18 of the app provider, to an API 322 of a prepaidinstrument provider server 18, for activation of the specifiedretailer's closed-loop gift card and for the given denomination. Theactivation can be made through various activation schemes, includingreal-time activation through a gift card processor (or stored value cardprovider engine 324), such as via the prepaid instrument provider server18, or through delivery of inventoried active cards. At block 219, thegift card provider's proprietary system can deliver an activate giftcard from the prepaid instrument provider server 18 in an assortment ofways. For instance, a raw card number and access code (if required bythe retailer) can be issued. This option allows the portable electronicdevice 312 to display the virtual gift card in a format tailoredspecifically for the mobile application 350. Optionally, a link to ahosted electronic gift card can be issued. In this case, a web page on aweb browser will display the card number, bar code, and access code tothe user.

Upon successful activation and delivery of the virtual gift card fromthe prepaid instrument provider server 18 or from the host server 18,the portable electronic device 312 can send a final request to the API350 of the points provider server 20, requesting a capture (deduction)of the points previously authorized. If the activation of the gift cardis not successful for reasons of system error, insufficient remaininginventory, network error, or any other error, for example, theauthorization of points can be voided through the API 350 of the pointsprovider server 20.

At step 221, the user can now redeem the value stored on the virtualgift card. In embodiments where the app offers proximity alerts as usernears a participating retailer's brick-and-mortar store or kiosklocations, a common use case will be to have the user redeem the virtualgift card at approximately the same time as when it is delivered. Thisis not a requirement, however, and the virtual gift card can be storedfor future use, such as on the host server 18 or the prepaid instrumentprovider server 18. Storage of the gift card can include a referencebeing stored on the portable electronic device 12, 112, 312, while thestored value of the virtual gift card and associated details areauthoritatively stored and regulated, for example, by the retailer'sgift card processor API 326 and engine 328, as well as the prepaidinstrument provider server 18.

The method 200 can optionally continue to block 223, where the userredeems some or all of the stored value (e.g., currency) of the virtualgift card at a point-of-sale (POS) redemption. POS redemption typicallyoccurs at one of the retailer's stores or kiosks and within theretailer's closed-loop card network (e.g., FIG. 10). Redemption canoccur in many different ways, for example, according to the technologyand protocols the retailer has at a POS terminal. For example,redemption can occur by scanning a barcode (such as a QR code) displayedon the portable electronic device (the barcode can be in any format theretailer supports at their POS terminal), manually entering/keying thecard details into the POS system, and/or any NFC technologies theretailer has installed. At block 225, the balance of the virtual giftcard is updated and, in at least some embodiments, the updated value isprovided to and displayed on the user's portable electronic device.Through either intelligent polling of the potential redemption of thedelivered virtual gift card, or through management of current balance'sby a gift card provider, the available balance can be updated as closeto real time as possible, and concomitantly reflected on the user'smobile device.

In some embodiments, the method 200 includes at least those stepsenumerated above. It is also within the scope and spirit of the presentinvention to omit steps, include additional steps, and/or modify theorder presented above.

Methods are also disclosed below of automatically converting rewardspoints to a virtual prepaid instrument using a portable electronicdevice 12 having a display device 30 and a user input device 28. Any ofthese methods described below can be combined or used in conjunctionwith any aspects disclosed above. A balance of rewards points associatedwith a user account stored on a points provider server 20 remote fromthe portable electronic device 12 is received over a wireless network 16at a portable electronic device 12. The rewards points are non-currencyand convertible by a user of the user account to an amount of currencycommensurate with the balance of reward points or to a good or a servicehaving a monetary amount or to a voucher, coupon, or promotional itemhaving a monetary value. The promotional item can include, for example,a give one get one item in which the user purchases a virtual gift cardhaving a predetermined monetary value and receives an additional item(good or service) of value, such as another virtual gift card or adiscount or a free item. Upon receiving the balance of the rewardpoints, the portable electronic device 12 receives from the user inputdevice 28 an indication of a number of the rewards points to beconverted. For example, the user can desire to convert or exchange acertain number of reward points to a desired amount of currency.

In the case where the user elects to convert the reward points to anamount of currency, the portable electronic device 12 communicates overthe wireless network 16 the desired amount of currency and a merchantidentification directly or through a host server 18 to a stored valueprepaid instrument provider server 20. The merchant identification isassociated with a merchant at which a virtual prepaid instrument iselectronically redeemed for a good or a service at a point-of-saleterminal at a physical location of the merchant 22, 24. The prepaidinstrument provider server 20 (a) is remote from the points providerserver 20 such that an issuer of the rewards points is a distinct entityfrom an issuer of the virtual prepaid instrument, (b) generates a codeassociated with the virtual prepaid instrument, and (c) associates withthe code at least the desired amount of currency as a stored valueassociated with the virtual prepaid instrument. A virtual prepaidinstrument exists in electronic form, stored on a non-transitorycomputer-readable medium, such as an electronic memory device, thoughthe virtual prepaid instrument can be printed or provided onto atangible medium such as paper, but it is not required to be.

Instead of converting the reward points to an amount of currency (e.g.,$5), the user can exchange the reward points for a good or service (suchas a free hat valued at $20) at a merchant or for a promotion such asgive one get one in which the user purchases a gift card having aminimum value (e.g., $50), and receives another gift card (such as $10)at no additional cost or requiring no additional reward points to beredeemed or a discount (such as $1 off a coffee) to be redeemed at thatmerchant location within a prescribed period of time. In these examples,the user can be in a merchant's store, use the portable electronicdevice 12 to instantly exchange on the spot in the merchant's storereward points for the good or service or promotion, without ever leavingthe merchant's store and in one transaction that does not require theuser to first convert the reward points to an exchange value and use theexchange value to purchase the good or service directly without anyexchange of currency or take advantage of the promotion. In each ofthese examples, the merchant's identity is communicated to the pointsprovider server 20 so that the entity hosting the points provider server20 can reconcile the value of the redeemed points with the merchant'saccount. In these examples, the item of value that the user is receivingin exchange for the reward points is associated with a particularmerchant, so the merchant identification information is communicated tothe points provider server 20 so that authorization can be received forthe user to user the reward points at that merchant for the item ofvalue (e.g., a free coffee at a coffee merchant or a promotional itemsuch as buy one get one free or buy a shirt at a clothing merchant andget a free $10 virtual gift card redeemable at the clothing merchant).

Returning to the example above in which the user desires to convertreward points for a stored value prepaid instrument having an associatedamount of currency, the display device 30 displays a representation ofthe code and the stored value associated with the virtual prepaidinstrument. The user presents the code (such as a barcode) at thepoint-of-sale terminal for purchasing the good or the service for apurchase price. For example, the user presents the barcode displayed onthe display device 30 to a cashier, who scans the barcode at thepoint-of-sale terminal at the merchant location. The purchase price ofthe item scanned is deducted from the stored value to produce a modifiedstored value, which is displayed on the display device 30.

The portable electronic device 12 communicates over the wireless network16 the purchase price (e.g., including applicable sales taxes) or themodified stored value directly or through the host server 18 to theprepaid instrument provider server 20 to cause the prepaid instrumentprovider server 20 to modify the stored value to the modified storedvalue. It should be emphasized that the host server 18 can be bypassedin these examples.

The portable electronic device 12 communicates directly or through thehost server 18 with the prepaid instrument provider server 20 via anapplication programming interface (API) associated with the prepaidinstrument provider 20 using a software application residing on theportable electronic device 12. When the portable electronic device 12communicates through the host server 18, the host server 18 uses the APIassociated with the prepaid instrument provider 20 to communicateinformation securely between the host server 18 and the prepaidinstrument provider 20.

The communication of the desired amount of currency and the merchantidentification can include a request for an authorization from thepoints provider server 20 for a deduction of the corresponding number ofthe reward points. The points provider server 20 returns an indicationas to whether the requested authorization was approved.

The portable electronic device 12 can receive, directly or through thehost server 18, from the prepaid instrument provider server 20 anindication that the virtual prepaid instrument has been activated by theprepaid instrument provider server and, responsive to receiving theindication that the virtual prepaid instrument has been activated, theportable electronic device communicating to the points provider server arequest to deduct the corresponding number of the reward points.

Optionally, the portable electronic device 12 can determine a maximumdenomination of currency available for conversion from the balance ofthe reward points based on a conversion rate between a reward point anda corresponding amount of currency. For example, 100 reward points canbe exchanged for $1. The display device 30 displays multipledenominations of currency (e.g., $5, $10, $20), including the maximumdenomination, available for selection by the user. For example, ifconversion rate is 100 reward points for $1, and the user has 2500reward points, the maximum denomination of currency in U.S. dollars thatcan be exchanged is $20. The desired amount of currency corresponds toone of the denominations of currency or an amount of currency entered bythe user via the user input device that does not exceed a maximum amountof currency (in this example, the maximum amount cannot exceed $25 for2500 reward points) corresponding to the balance of the reward pointsbased on the conversion rate.

Aspects of this disclosure can be implemented, in some embodiments,through a computer-executable program of instructions, such as programmodules, generally referred to as software applications or applicationprograms executed by a computer. The software can include, innon-limiting examples, routines, programs, objects, components, and datastructures that perform particular tasks or implement particularabstract data types. The software forms an interface to allow a computerto react according to a source of input. The software can also cooperatewith other code segments to initiate a variety of tasks in response todata received in conjunction with the source of the received data. Thesoftware can be stored on any of a variety of memory media, such asCD-ROM, magnetic disk, bubble memory, and semiconductor memory (e.g.,various types of RAM or ROM).

Moreover, the numerous aspects of the present disclosure can bepracticed with a variety of computer-system and computer-networkconfigurations, including hand-held devices, multiprocessor systems,microprocessor-based or programmable-consumer electronics,minicomputers, mainframe computers, and the like. In addition, aspectsof the present disclosure can be practiced in distributed-computingenvironments where tasks are performed by remote-processing devices thatare linked through a communications network. In a distributed-computingenvironment, program modules can be located in both local and remotecomputer-storage media including memory storage devices. Aspects of thepresent disclosure can therefore, be implemented in connection withvarious hardware, software or a combination thereof, in a computersystem or other processing system.

Any of the methods described herein can include machine readableinstructions for execution by: (a) a processor, (b) a controller, and/or(c) any other suitable processing device. Any algorithm, software, ormethod disclosed herein can be embodied in software stored on a tangiblemedium such as, for example, a flash memory, a CD-ROM, a floppy disk, ahard drive, a digital versatile disk (DVD), or other memory devices, butpersons of ordinary skill in the art will readily appreciate that theentire algorithm and/or parts thereof could alternatively be executed bya device other than a controller and/or embodied in firmware ordedicated hardware in a well known manner (e.g., it can be implementedby an application specific integrated circuit (ASIC), a programmablelogic device (PLD), a field programmable logic device (FPLD), discretelogic, etc.). Also, some or all of the machine readable instructionsrepresented in any flowchart depicted herein can be implementedmanually. Further, although specific algorithms are described withreference to flowcharts depicted herein, persons of ordinary skill inthe art will readily appreciate that many other methods of implementingthe example machine readable instructions can alternatively be used. Forexample, the order of execution of the blocks can be changed, and/orsome of the blocks described can be changed, eliminated, or combined

While particular embodiments and applications of the present disclosurehave been illustrated and described, it is to be understood that thepresent disclosure is not limited to the precise construction andcompositions disclosed herein and that various modifications, changes,and variations can be apparent from the foregoing descriptions withoutdeparting from the spirit and scope of the invention as defined in theappended claims.

What is claimed is:
 1. A method of executing a software application on aportable electronic device with a display device and a user inputdevice, the method comprising: determining, via the portable electronicdevice, a location of the portable electronic device; displaying, viathe display device, a plurality of merchants within a predeterminedproximity of the location of the portable electronic device; displaying,via the display device, a selection corresponding to at least one of themerchants; displaying, via the display device, a balance of virtualrewards points available for redemption by a user; displaying, via thedisplay device, an exchange value of the virtual rewards points formaking a purchase associated with the selected at least one merchant;and in response to a purchase request received via the user inputdevice, authorizing deduction of the exchange value from the balance ofthe virtual rewards points and providing confirmation of the purchaseassociated with the selected at least one merchant.
 2. The method ofclaim 1, wherein the purchase includes a card value for a gift cardassociated with the selected at least one merchant, and wherein theconfirmation of the purchase includes confirmation that the card valueis added to an account associated with the gift card.
 3. The method ofclaim 2, wherein the account associated with the gift card is apreexisting gift card account associated with the user.
 4. The method ofclaim 2, further comprising receiving, via the user input device, aninstruction to deliver the gift card to someone other than the user. 5.The method of claim 2, wherein the gift card is a virtual gift card, andwherein the confirmation of the purchase includes displaying, via thedisplay device of the portable electronic device, a representation ofthe virtual gift card.
 6. The method of claim 5, wherein the purchasefurther is for a good or a service, or both, from the selected at leastone merchant, and wherein the purchase is completed, at least in part,with information transferred at a Point-of-Sale system via the displayedvirtual gift card.
 7. The method of claim 1, wherein the purchase is fora good or a service, or both, from the selected at least one merchant,and wherein the purchase is completed, at least in part, via thesoftware application on the portable electronic device.
 8. The method ofclaim 1, wherein the displaying the plurality of merchants includesarranging the merchants in a hierarchy based, at least in part, on adistance of each of the merchants from the location of the portableelectronic device.
 9. The method of claim 8, wherein the displayedhierarchy of merchants is automatically updated in response to adetermination that the portable electronic device moved to a newlocation different from the location.
 10. The method of claim 1, whereinthe displaying the plurality of merchants includes displaying on a map arespective location of each of the merchants and the location of theportable electronic device relative to the plurality of merchants. 11.The method of claim 1, wherein the displaying the plurality of merchantsincludes displaying respective distance and location informationcorresponding to each of the merchants.
 12. The method of claim 1,wherein the predetermined proximity within which the merchants arelocated is selected by the user.
 13. The method of claim 1, wherein theplurality of merchants is a subset of a group of participatingmerchants, the method further comprising: receiving, via the user inputdevice, a selection of the group of participating merchants; and inresponse to a request received via the user input device, converting aselected number of virtual rewards points into a gift card associatedwith the selected participating merchant.
 14. The method of claim 1,further comprising: displaying a plurality of user-selectable purchases;and receiving, via the user input device, a selection of one of the userselectable purchases, wherein the displayed exchange value correspondsto a respective exchange value of the selected-user selectable purchase.15. The method of claim 1, wherein the software application is adedicated mobile device application downloaded via the user to theportable electronic device.
 16. A computer program product for aportable electronic device, the computer program product comprising oneor more non-transient computer-readable media including instructionswhich, when executed by one or more processors, cause the one or moreprocessors to operate with one or more input devices and one or moredisplay devices to: display a plurality of merchants within apredetermined proximity of a predetermined location of the portableelectronic device; display a selection corresponding to at least one ofthe merchants; display a balance of virtual rewards points available forredemption by a user; display an exchange value of the virtual rewardspoints for making a purchase associated with the selected at least onemerchant; and in response to receipt of an indication of a purchaserequest, authorize a deduction of the exchange value from the balance ofthe virtual rewards points and provide confirmation of the purchaseassociated with the selected at least one merchant.
 17. A system forconducting a commercial transaction using a portable electronic devicewith a display device and a user input device, the system comprising:one or more processors communicatively coupled to the portableelectronic device; and a dedicated software application on the portableelectronic device, the dedicated software application being configuredto: in cooperation with the display device, display a plurality ofmerchants within a predetermined proximity of a determined location ofthe portable electronic device; receive, from the user input device, anindication of a selection corresponding to at least one of themerchants; receive, from the one or more processors, data indicative ofa balance of virtual rewards points available for redemption by a user;in cooperation with the display device, display the balance, one or morepurchases that can be acquired with the balance of virtual rewardspoints, and, for each of the displayed one or more purchases, acorresponding exchange value of the virtual rewards points for makingthe purchase from the selected at least one merchant; receive, from theuser input device, an indication of a purchase request for at least oneof the one or more purchases; and in response to the purchase request,send a signal to the one or more processors to deduct the exchange valuefrom the balance of the virtual rewards points and complete the purchasewith the selected at least one merchant.
 18. The system of claim 17,wherein the one or more purchases include a card value for a gift cardassociated with the selected at least one merchant, and wherein thecompleting the purchase includes confirming the card value is added toan account associated with the gift card.
 19. The system of claim 18,wherein the account associated with the gift card is a preexisting giftcard account associated with the user.
 20. The system of claim 18,wherein the gift card is a virtual gift card, and wherein the completingthe purchase includes displaying, via the display device of the portableelectronic device, the virtual gift card.
 21. The system of claim 20,wherein the one or more purchases is for a good or a service, or both,from the selected at least one merchant, and wherein the completing thepurchase is based, at least in part, on information transferred at aPoint-of-Sale system via the displayed virtual gift card.
 22. The systemof claim 17, wherein the one or more purchases is for a good or aservice, or both, from the selected at least one merchant, and whereinthe purchase is completed, at least in part, via the dedicated softwareapplication on the portable electronic device.
 23. The system of claim17, wherein the displaying the plurality of merchants includes arrangingthe merchants in a hierarchy based, at least in part, on a distance ofeach of the merchants from the location of the portable electronicdevice.
 24. The system of claim 23, wherein the displayed hierarchy ofmerchants is automatically updated in response to a determination thatthe portable electronic device moved to a new location.
 25. The systemof claim 17, wherein the displaying the plurality of merchants includesdisplaying respective distance and location information corresponding toeach of the merchants.
 26. A method of automatically converting rewardspoints to a virtual prepaid instrument using a portable electronicdevice having a display device and a user input device, the methodcomprising: receiving over a wireless network at a portable electronicdevice a balance of rewards points associated with a user account storedon a points provider server remote from the portable electronic device,the rewards points being non-currency and convertible by a user of theuser account to an amount of currency commensurate with the balance ofreward points; responsive to receiving the balance of the reward points,receiving from the user input device an indication of a desired amountof currency to exchange for a corresponding number of the rewardspoints; the portable electronic device communicating over the wirelessnetwork the desired amount of currency and a merchant identificationdirectly or through a host server to a stored value prepaid instrumentprovider server, the merchant identification being associated with amerchant at which a good or a service at a point-of-sale terminal at aphysical location of the merchant is offered for purchase or exchange,the prepaid instrument provider server (a) being remote from the pointsprovider server such that an issuer of the rewards points is a distinctentity from an issuer of a virtual prepaid instrument, (b) generating acode associated with the virtual prepaid instrument, and (c) associatingwith the code at least the desired amount of currency as a stored valueassociated with the virtual prepaid instrument; displaying on thedisplay device a representation of the code and the stored valueassociated with the virtual prepaid instrument; in response to therepresentation of the code being presented at the point-of-sale terminalfor purchasing the good or the service for a purchase price, deductingthe purchase price from the stored value to produce a modified storedvalue and displaying the modified stored value on the display device;and the portable electronic device communicating over the wirelessnetwork the purchase price or the modified stored value directly orthrough the host server to the prepaid instrument provider server tocause the prepaid instrument provider server to modify the stored valueto the modified stored value.
 27. The method of claim 26, wherein theportable electronic device communicates directly or through the hostserver with the prepaid instrument provider server via an applicationprogramming interface associated with the prepaid instrument providerusing a software application residing on the portable electronic device.28. The method of claim 27, wherein the communicating the desired amountof currency and the merchant identification includes requesting anauthorization from the points provider server for a deduction of thecorresponding number of the reward points and receiving from the pointsprovider server an indication as to whether the requested authorizationwas approved.
 29. The method of claim 27, further comprising receivingdirectly or through the host server from the prepaid instrument providerserver an indication that the virtual prepaid instrument has beenactivated by the prepaid instrument provider server and, responsive toreceiving the indication that the virtual prepaid instrument has beenactivated, the portable electronic device communicating to the pointsprovider server a request to deduct the corresponding number of thereward points.
 30. The method of claim 26, further comprising:determining a maximum denomination of currency available for conversionfrom the balance of the reward points based on a conversion rate betweena reward point and a corresponding amount of currency; and displaying onthe display device a plurality of denominations of currency, includingthe maximum denomination, available for selection by the user, whereinthe desired amount of currency corresponds to one of the denominationsof currency or an amount of currency entered by the user via the userinput device that does not exceed a maximum amount of currencycorresponding to the balance of the reward points based on theconversion rate.
 31. The method of claim 26, wherein the code includes abarcode that is presented on the display device to a barcode scanner atthe point-of-sale terminal.
 32. The method of claim 26, wherein theissuer of the rewards points and the issuer of the virtual prepaidinstrument are not affiliated with one another.
 33. A method ofautomatically exchanging rewards points using a portable electronicdevice having a display device and a user input device, the methodcomprising: receiving over a wireless network at a portable electronicdevice a balance of rewards points associated with a user account storedon a points provider server remote from the portable electronic device,the rewards points being non-currency and convertible by a user of theuser account to an amount of currency commensurate with the balance ofreward points; responsive to receiving the balance of the reward points,receiving from the user input device an indication of a desired amountof currency to exchange for a corresponding number of the rewardspoints; the portable electronic device communicating to a host serverover the wireless network the desired amount of currency and a merchantidentification, the merchant identification being associated with amerchant having a point-of-sale terminal at a physical location of themerchant, the host server being remote from the points provider serverand operated by an entity different from an entity that operates thepoints provider server; storing on the host server the desired amount ofcurrency as a stored value; displaying on the display device arepresentation of the code and the stored value; in response to therepresentation of the code being presented at the point-of-sale terminalfor an item of value, deducting the value of the item from the storedvalue to produce a modified stored value and displaying the modifiedstored value on the display device; and the portable electronic devicecommunicating to the host server over the wireless network the modifiedstored value to cause the host server to modify the stored value to themodified stored value.
 34. The method of claim 33, wherein the item ofvalue is a good or a service offered for purchase at the physicallocation of the merchant or a promotional item redeemable at thephysical location of the merchant.
 35. The method of claim 33, furthercomprising communicating with the point-of-sale terminal via near fieldcommunication (NFC) to complete a subsequent transaction.